Stocks in the entire stock market

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Suppose there are only ten stocks in the entire stock market, with the following market valuations:

Alpha Corp.

$8 billion

Bravo Corp.  

$6 billion

Charlie Corp.

$30 billion

Delta Corp.

$40 billion

Echo Corp.

$16 billion

Foxtrot Corp.

$22 billion

Golf Corp.

$2 billion

Hotel Corp.

$10 billion

India Corp.

$46 billion

Juliett Corp.

$20 billion

Now, suppose we have invested in an index fund that tracks the entire stock market. What percentage of that index fund would be invested in Charile Corp. and Delta Corp., respectively?

A. Charlie 15% & Delta 20%

B. Charlie 30% & Delta 40%

C. Charlie 10% & Delta 10%

D. The answer will depend on whether the fund is a mutual fund or an ETF. 

The index fund described previously is:

A. Active

B. Passive

C. Growth

D. Value

E. None of the above

Reference no: EM133120416

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